OPF:FIUBPCSA Case Studies in Financial Mana - Course Information

FIUBPCSA Case Studies in Financial Management

Extent and Intensity

0/2/0. 5 credit(s). Type of Completion: z (credit).

Teacher(s)

Ing. Tomáš Heryán, Ph.D. (seminar tutor)

Guaranteed by

Department of Finance and Accounting – School of Business Administration in Karvina
Contact Person: Ing. Irena Szarowská, Ph.D., MPA

Prerequisites

None

Course Enrolment Limitations

The course is offered to students of any study field.

Course objectives

The aim of the course is to provide students with cases in business management from point of view of essential knowledge in corporate finance about project and investment valuating, mergers and acquisitions, estimating of capital costs, problematic of risk of investment and portfolio.

Syllabus

• 1. Time value of money
  2. Real value of cash flows
  3. Valuating methods
  4. Mergers and acquisitions
  5. Capital structure
  6. Risk
  1. Time value of money
  Present and future value of cash flows. Compounding and discounting. Effective annual interest rate.
  2. Real value of cash flows
  Real and nominal value of interest rate. Our investment influent by rate of inflation. Deflation.
  3. Valuating methods
  Net present value method (NPV) and its practical usage on an example of case study. Advantages and disadvantages.
  4. Valuating methods
  Internal rate of return method (IRR) and its practical usage on an example of case study. Advantages and disadvantages.
  5. Valuating methods
  Profitability index method (PI) and its practical usage on an example of case study. Advantages and disadvantages.
  6. Valuating methods
  Payback period method (PBP) and its practical usage on an example of case study. Advantages and disadvantages.
  7. Mergers and acquisitions
  Principles, factors, motivations, consequences and evaluation of mergers and acquisitions.
  8. Mergers and acquisitions
  Examples of mergers and acquisitions in the Czech republic. Costs and benefits for companies. Meaning for managers, customers, shareholders.
  9. Mergers and acquisitions
  Examples of mergers and acquisitions in others countries. Costs and benefits for companies. Meaning for managers, customers, shareholders.
  10. Capital structure
  Own and foreign financial sources. Searching for optimal capital structure. Theoretical basis. Costs of capital. Costs of equity and debt financing. Financial leverage. Financial risk.
  11. Capital structure
  Capital costs, WACC. Costs of equity and debt financing. Tax shield.
  12. Risk
  Magical triangle. Risk of simple investment. Risk as a part of economy. Risk versus uncertainty. How to determine the probability. Expected rate of profit, variation coefficient.
  13. Risk
  Risk of portfolio of two assets. Specific and systematic risk. Diversification of risk. Correlation coefficient and its use for investment valuation.
  

Literature

required literature
• WATSON, D., HEAD, A. I. Corporate Finance. Priniples & Practice. Prentice Hall, 2007. ISBN 13: 978-0-273-706. info
• ROSS, SR., WESTERFIELD, RW., JORDAN, BD. Fundamentals of Corporate Finance (7th Edition). Boston: McGraw-Hill, 2006. ISBN 0-07-319262-7. info
• BREALEY, A., MYERS, SC., ALLEN, F. Corporate Finance. Boston: McGraw-Hill, 2005. ISBN 0-07-111795-4. info

recommended literature
• Various readings from The Economist, The Euro and other financial magazines. info
• BLOCK, SB., GEOFFREY, GA. Foundations of Financial Management. Boston: McGraw-Hill, 2005. ISBN 0-07-284229-6. info
• MADURA, J. International Corporate Finance. New York: Thompson South-Western, 2005. ISBN 0-32-432382-4. info
• BURKLEY, A., ROSS, SA., WESTERFIELD, RW., JAFFE, JF. Corporate Finance Europe. Cambridge: McGraw-Hill, 2004. ISBN 0-256-13473-1. info

Teaching methods

Seminar classes

Assessment methods

Credit

Language of instruction

English

Further comments (probably available only in Czech)

The course can also be completed outside the examination period.

Teacher's information

https://elearning.opf.slu.cz/course/view.php?id=771
Conditions: Compulsory attendance at seminars 25 %. Seminar paper, seminar discussion, ongoing test, written final exam
Share in the course´s evaluation: Seminar paper (20% of the evaluation), seminar discussion (10% of the evaluation), ongoing test (10% of the evaluation), written final exam (60% of the evaluation)

Activity	Difficulty [h]
Ostatní studijní zátěž	89
Seminář	26
Zápočet	30
Summary	145

• Enrolment Statistics (Summer 2018, recent)
  
• Permalink: https://is.slu.cz/course/opf/summer2018/FIUBPCSA